The Corporate Transparency Act (CTA) went into effect on January 1, 2024, impacting countless organizations across the country. The challenge, however, is navigating the complexities of the CTA’s guidelines and reporting requirements. Organizations are being tasked with filing for all their applicable entities and beneficial owners, which is anyone who has 25% or more ownership of an entity (whether direct or indirect) or substantial control.
Depending on your organizational structure and number of entities, the CTA can add more-than-desired administrative work to teams that can’t afford to neglect existing responsibilities. What’s even scarier, violating the CTA may result in a daily $500 fine until corrected (maximum penalty of $10,000) and criminal penalties may result in imprisonment for up to two years.
